Surrendering Your Assets in a St. Louis Bankruptcy
Sometimes it just makes sense to cut your losses, and let the asset go. Although such a decision can be difficult to make, it very often is the best of all available options. Whether it is an automobile, a piece of real estate, or a rent-to-own contract, a Missouri bankruptcy (either St. Louis Chapter 7 or St. Louis Chapter 13) can eliminate any arrearage or overdue balance associated with the asset, and get you out from underneath the debt itself.
When is the surrender of a home the best option? If you are already several months behind on your payments, your income has been significantly reduced, and the balance of the mortgage is greater than the value of the home (i.e. there is no equity), then it may be a better choice to surrender the real estate in a St. Louis bankruptcy. Such a scenario may not seem like the best route to take, but it is often better than attempting to repay the arrearage (i.e. the amount you have fallen behind on) inside a Missouri Chapter 13.
When is the surrender of an automobile the best option? If you are already several months behind on your payments, the loan has a high interest rate attached to it (10% or higher), the automobile has several mechanical problems or has a lot of mileage, and the creditor is attempting to repossess the asset, then it may be a better choice to surrender the car, truck, motorcycle, and/or boat. You will still have the ability to purchase a new mode of transportation if you surrender the asset. If the case is a St. Louis Chapter 7, you may be eligible to buy a new car immediately after the filing; if the case is a St. Louis Chapter 13, you can buy another car once the court grants permission to do so.
Regardless of your choice, the St. Louis bankruptcy lawyers at Brinkman & Alter, LLC will provide you with the expert advice you need in order to make the best decision. Our goal is not to push you in any particular direction, but rather to give you as much information as you need in order to do what is best for you and your family.